Uganda

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Uganda Exploration Activities

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There are six (6) sedimentary basins in Uganda, out of which the Albertine Graben is the most investigated and henceforth prospective for petroleum exploration, development and production. The Graben forms the northern most part of the western arm of the East African Rift System, stretching from the border with South Sudan in the north to Lake Edward in the south, a distance of over 500 km.
 
Within the Albertine Graben, a total of about 6,000 line kilometers of 2D seismic data and about 2,000km2 of 3D seismic data have been acquired. In addition, since 2002, One hundred and twenty seven (127) wells have been drilled in the Graben and One hundred and Fifteen (115) wells encountered oil in multiple reservoir intervals in the subsurface, representing a remarkable drilling success.  To-date, twenty one (21) discoveries of oil and gas have been made in the country in excellent quality reservoir sands and many of the wells drilled have intersected significant net oil pay sometimes in excess of 30m. The oil is generally light to medium gravity (API of approx. 30o to 33o) and sweet, with low Gas-Oil Ratio (GOR) and some associated wax. The discovered resources are currently estimated at a STOIIP of 6.5 billion barrels of oil and about 500 billion cubic feet of gas resources.
 
Approximately 10% of the petroliferous Albertine Graben is currently licensed to international oil companies. The companies are Tullow Uganda Operations Pty Limited (Tullow), Total Exploration & Production Uganda B.V (Total) and CNOOC Uganda Limited (CNOOC). Each of the listed three companies holds 33.333% equity in the 4 licenses that make up the licensed part of the Albertine Graben. All the three companies have been issued with production licenses. CNOOC was issued with a Production License for the Kingfisher oil field while Tullow and Total have been issued with eight (8) production licenses; five (5) licenses for Tullow and three (3) licenses for Total.
 
Government of Uganda and the partners are currently undertaking the necessary developments to effect the commercialization of the resources. The commercialization is planned to include development of a 60,000bbl/day modular refinery starting with an initial processing capacity of 30,000bbl/day, use of crude oil to generate electricity in short term and development of an export pipeline. The refinery development is currently in progress. Government is sourcing for a lead investor while the necessary studies on the least cost route for transporting Uganda's crude oil to the East African coast to access the international market were concluded and the export route will be through Tanzania at Tanga Port. Other pipelines are planned to be developed in the country, these include; gathering lines from fields to CPFs, feeder pipelines from the CPFs to collection hub, product pipeline from refinery to central market in Kampala and product pipelines linking Uganda to East African countries under studies.
 
Also, following the putting in place of a new legal framework for the oil and gas sector, Ugandan Government resumed in 2015 the process of licensing acreage in the Albertine Graben for petroleum exploration, development and production through implementation of a competitive licensing round. Seven (7) companies submitted proposals for five blocks. The proposals were evaluated and consequently, four (4) out of the seven (7) companies that bid for acreage were awarded exploration blocks and are currently in negotiation for the Production Sharing Agreements with Government.